- United Auto Workers members have walked off the job at a Michigan plant that makes axles used in some General Motors trucks.
- Dealers still have plenty of trucks to sell, and GM has not run out of axles, but if the strike drags on, it could mean fewer trucks on sales lots.
- The two sides are not yet talking.
A strike has threatened production of General Motors’ heavy-duty and midsize trucks, though shoppers will still find plenty to choose from in the near term.
The United Auto Workers (UAW) union is not striking GM itself, but rather a supplier called American Axle and Manufacturing, which is owned by Detroit-based Dauch Corp. Its Three Rivers, Michigan, plant makes axles used in the Chevrolet Silverado Heavy Duty, GMC Sierra Heavy Duty, Chevrolet Colorado, and GMC Canyon pickups.
The Detroit News notes, “Some components made at the plant also go toward light-duty Silverados and Sierras.”
Wages in Dispute
- Workers say they are underpaid. The company says it wants to work things out in negotiations, not through the media.
A contract between Dauch and the UAW expired Monday, June 1, leading workers to walk off the job. Industry publication Automotive News reports that the two sides had been negotiating since March, but failed to reach an agreement on wages and benefits.
They have since stopped negotiating.
In a statement, the UAW alleged that, over the past decade, “The company’s CEO has been paid $111 million, with the top five executives receiving nearly $231 million in compensation – while UAW members working at the Three Rivers plant struggle to afford basic needs, with some even forced to sleep in their cars.”
Dauch has responded, “The Company believes that the best outcomes for everyone — our Associates, the union, and the Company — are reached at the bargaining table.”
Factories are Still Running, and Dealers Still Have Trucks… for Now
- Truck shoppers shouldn’t notice a shortage yet, but one could loom if the strike drags on.
Truck shoppers shouldn’t notice much change yet.
Reuters reports that “GM has about two weeks of axle supplies to continue production.”
AN notes that Dauch has stockpiled about two weeks’ worth of axles it can continue to ship, and “roughly 250 management-level employees have been assigned to work 12-hour days to keep making parts.”
Kelley Blue Book data show that dealers ended April with between 52 and 69 days’ supply of each affected truck model. That’s slightly low – they traditionally aim for 75 – and comes at a time when GM hoped to build up a larger stockpile to compete, as rival Ford finds itself short of F-150 pickups after a supplier fire limited its own parts supply.
The last major UAW strike, in 2023, lasted more than six weeks.
